Financial Crime World

DR Congo Adopts Reforms to Strengthen Financial Sector

Strengthening Regulatory Framework

KINSHASA, DEMOCRATIC REPUBLIC OF THE CONGO - The Democratic Republic of Congo has taken a significant step towards strengthening its financial sector by adopting reforms aimed at modernizing its regulatory framework. The reforms, which came into effect in March 2023, aim to prevent money laundering, terrorist financing, and proliferation of weapons of mass destruction.

Establishment of National Financial Intelligence Unit (CENAREF)

The new regulations establish a National Financial Intelligence Unit (CENAREF) responsible for identifying and monitoring suspicious transactions. All taxable persons, including banks, financial institutions, and other market operators, will be required to implement constant monitoring measures to prevent financial crimes.

  • Identify beneficial owners of operations
  • Report any suspicious transactions to CENAREF

Stricter Sanctions for Violators

The reforms introduce stricter sanctions for violators, including:

  • Freezing and seizure of assets
  • Increased penalties for non-compliance with the new regulations

Advisory Committee on Fight Against Money Laundering and Financing of Terrorism and Proliferation (COLUB)

The government has established an Advisory Committee on the Fight Against Money Laundering and Financing of Terrorism and Proliferation (COLUB) to assist in defining and implementing national policy in this area.

Promoting Digital Innovation

In related news, the government has also taken steps to promote digital innovation in the financial sector through the adoption of a Digital Code. The code aims to create a favorable environment for fintech companies to operate in the country by establishing a framework for regulating digital services, including:

  • Electronic commerce
  • Advertising
  • Identification
  • Data processing

Boosting Banking Sector and Financial Inclusion

The reforms are expected to have a positive impact on the banking sector, which has been struggling with high levels of non-performing loans and low levels of financial inclusion. The adoption of digital technologies is expected to increase financial inclusion and improve access to financial services for individuals and small businesses.

Conclusion

Overall, the reforms are seen as a major step forward in strengthening the Democratic Republic of Congo’s financial sector and promoting economic growth and development in the country.